http://www.marketwatch.com/story/bernanke-probing-goldmans-dealings-with-greece-2010-02-25
Feb. 25, 2010, 10:09 a.m. EST · Recommend (1) · Post: Bernanke probing Goldman's dealings with Greece WASHINGTON (MarketWatch) -- Federal Reserve Board Chairman Ben Bernanke revealed Thursday that the central bank is looking into Goldman Sachs Group Inc.'s dealings with the Greek government. "We are looking into a number of questions of Goldman Sachs' derivative arrangements with Greece," Bernanke said in testimony before the Senate Banking Committee. The European Union has demanded that the Greek government provide details of how it used currency swaps and other instruments. The New York Times reported that Greece in 2001 had borrowed billions, with the aid of Goldman Sachs /quotes/comstock/13*!gs/quotes/nls/gs (GS 156.36, -0.08, -0.05%) in a deal hidden from public view because it was treated as a currency trade rather than a loan. Bernanke also said the Fed was looking into trading of credit default swaps that allow financial firms and investors to bet that Greece will default on its debt. Bernanke said this trading was "counter-productive" and under review by the Fed and the Securities and Exchange Commission.
